Generation Z is bringing big changes to the US economy. With over $143 billion in annual spending, Gen Z’s share of the global income is on track to eclipse Millennials’ by 2031. On top of their impressive spending power, Gen Z boasts the monikers of “diversity generation” and “best educated generation in America.” 48% of the generation is non-white, 20% is part of the LGBTQ+ community, and 57% enroll in postsecondary education.
Why do these distinctions matter? They influence how Gen Z chooses to spend their money. Only 36% of Gen Zers express a strong connection to any particular brand. Instead, Gen Z buys based on perceived company values. Of particular importance to them are sustainability and inclusion. A majority of those surveyed want to see brands embrace inclusivity in advertising and company-wide initiatives. Particular actions companies can take include hiring more diversity in senior leadership, allowing customers to search gender neutral clothing and accessories, and adding no-binary gender options to forms.
If your brand hasn’t adopted a Gen Z focused marketing strategy already, it’s endangering the company’s future. The world is always changing, and learning to adapt to new consumer preferences ensures money is not left on the table.